Liam O'Mahony, Chief Executive Harry Sheridan, Finance Director Year-End Results, 5 March, 2002

Transcription

1 Liam O'Mahony, Chief Executive Harry Sheridan, Finance Director 1

2 2001 HIGHLIGHTS Sales 10,444m + 18% Before goodwill amortisation Trading profit 1,035m + 11% 976m + 10% Profit before tax 862m + 16% 803m + 15% Earnings per share c + 3% * c + 1% * Cash earnings per share c + 5%* Dividend per share 23.00c + 11%* *based on 2000 comparatives adjusted for 1 for 4 Rights Issue After goodwill amortisation 2

3 2001 OVERVIEW Geographic & sectoral balance underpins performance in difficult year Weather-extended US season, group profits beat November update Ireland: overall construction activity flat with weakening in H2 UK: new house building remains weak, brick price increases sustained Europe: mixed trading, 10m closure costs in Germany/France Americas: strong Materials advance partly offset by Precast decline Acquisitions: solid spend of 1.1bn on 50+ acquisitions 3

4 REPUBLIC OF IRELAND 2001 Exchange Acquisitions Disposals Organic Sales 704m + 5% + 33m - + 8m m EBIT* 150m + 8% + 12m - + 1m + 11m - EBIT margin 21.3% (2000: 20.7%); excl. disposals 19.0% (2000: 19.9%) *after goodwill amortisation nil (2000: nil) & including profit on disposals 16.4m (2000: 5.0m) Significantly higher profit on disposal of surplus lands H1 growth despite impact of FMD prevention measures However, second half activity weakened with lower economic growth House completion numbers held up, but starts were down Non-residential activity slowed in H2 National Development Plan underpinned infrastructure 4

5 BRITAIN & NORTHERN IRELAND 2001 Exchange Acquisitions Discontinued Operations Disposals Organic Sales 680m - 3% - 18m - 14m + 18m - 16m - - 6m EBIT* 62m +10% + 6m - 1m + 1m - + 5m + 1m EBIT margin 9.0% (2000: 8.0%); excl. disposals 8.3% (2000: 8.0%) *after goodwill amortisation 5.2m (2000: 5.1m) & including profit on disposals 4.9m (2000: nil) Profit on disposal of 5m arising from Ibstock land sale Housing weak; planning delays, site availability, weather Ibstock brick volumes down 4% with commodity bricks worst affected Price (+5%) and efficiency gains helped Ibstock offset volume declines Concrete products demand also affected, resulting in lower profits Insulation activities benefited from lower raw material costs Northern Ireland: satisfactory year with good P.F.I. activity 5

6 MAINLAND EUROPE 2001 Exchange Acquisitions Disposals Closure Costs Organic Sales 2,652m + 31% + 621m + 25m + 483m + 136m m EBIT* 163m + 2% + 3m + 3m + 31m + 13m - 9m - 10m - 25m EBIT margin 6.2% (2000: 7.9%); excl. disposals 6.3% (2000: 7.6%) *after goodwill amortisation 24.1m (2000: 19.1m) & including loss on disposals 4.2m (2000: profit 4.9m) Loss on disposal on Insulation business transfer to J.V.; FX reflects stronger PLN Switzerland: full year contribution; Sales + 346m, EBIT + 27m, met expectations Israel: positive 5 month contribution of 6m from highly efficient facilities Netherlands: higher profits; distribution / clay / fencing up; concrete down Belgium: good advance mainly reflecting acquisitions France: distribution ahead; concrete profits hit by 2m closure costs Spain: further volume gains in competitive markets Germany: clay sharply lower due to volume/price declines and 8m closure costs Finland: lower demand, particularly in Helsinki market, impacted profits Poland: sharp volume declines only partly offset by cement price increases 6

7 AMERICAS - MATERIALS 2001 Exchange Acquisitions Disposals Organic Sales 3,168m + 17% + 456m + 85m + 48m + 237m m EBIT* 330m + 30% + 76m + 8m - 16m + 39m - 2m + 47m EBIT margin 10.4% (2000: 9.4%) *after goodwill amortisation 17.0m (2000: 12.4m) & including profit on disposals 1.3m (2000: 3.3m) Good margin recovery reflecting lower liquid asphalt/energy costs Favourable Nov/Dec weather conditions resulted in an extended paving season 16m first-time winter losses from 2000 acquisitions (Shelly/Dolomite) Strong initial contribution from Mt. Hope, Hallett/Des Moines and other 2001 acquisitions Excellent organic advance reflecting lower energy/asphalt costs and TEA-21 benefits Generally strong activity in Northeast, but Connecticut slower Northwest also strong; Mountain states remain competitive Michigan improved; Ohio / W Virginia markets remained flat 7

8 AMERICAS - PRODUCTS & DISTRIBUTION 2001 Exchange Acquisitions Disposals Organic Sales 3,240m + 17% + 482m + 86m + 252m + 100m m EBIT* 271m - 3% - 9m + 9m + 15m + 7m - 2m - 38m EBIT margin 8.4% (2000: 10.1%) *after goodwill amortisation 12.9m (2000: 6.7m) & including loss on disposals 2.1m (2000: loss 0.4m) Organic decline more than offset FX & acquisition benefits Precast: badly hit by weaker Telco, utility sectors and Sept 11th fall-out APG: profitability impacted by plant start-ups and natural gas increases Glass: slower in H2, but good contributions from 2000 acquisitions Distribution: solid progress including margin improvement South America: results down in difficult markets 8

9 2001 ACQUISITIONS AND INVESTMENTS OF 1.1bn Europe Materials 0.2 bn: 25% stake in Mashav, Israel's sole cement producer Bolt-on deals in Finland and Poland Europe P&D 0.2 bn: Expansion of DIY in Benelux and Insulation activities into Nordic region Significant additions in Distribution and Concrete Products in France Americas Materials 0.45 bn Mt. Hope a major addition to our operations in NY/NJ metro area 15 other deals including our first move into Iowa Americas P&D 0.25 bn Major APG expansions in Canada and in U.S. bagged goods market Significant add-ons for Glen-Gery and Allied's Distribution operations 9

10 2001 COMPONENTS OF GROWTH m Sales EBITA Goodwill Amortisation Interest EBT , (43) (191) 697 Exchange effects (1) (7) 12 Disposed businesses (16) ,444 1,035 (59) (173) 803 Increase +18% +11% +15% 10

11 2001 COMPONENTS OF GROWTH m Sales EBITA Goodwill Amortisation Interest EBT , (43) (191) 697 Exchange effects (1) (7) 12 Disposed businesses (16) acquisitions (10) (38) (6) 2001 acquisitions (5) (24) ,444 1,035 (59) (173) 803 Increase +18% +11% +15% 11

12 2001 COMPONENTS OF GROWTH m Sales EBITA Goodwill Amortisation Interest EBT , (43) (191) 697 Exchange effects (1) (7) 12 Disposed businesses (16) acquisitions (10) (38) (6) 2001 acquisitions (5) (24) 35 Share issues Profit on disposals Closure costs - (10) - - (10) Organic 126 (15) ,444 1,035 (59) (173) 803 Increase +18% +11% +15% 12

13 CASH EARNINGS PER SHARE cent % Earnings per share before goodwill amortisation Depreciation per share Cash earnings per share

14 2001 FUNDS FLOW 2001 m 2000 m Inflows PBT Depreciation Goodwill amortisation ,298 1,092 Outflows Working capital (61) (75) Tax paid (79) (140) Dividends (103) (82) Replacement capital expenditure (336) (320) Other (29) (23) (608) (640) Operating cash flow Development capital expenditure (116) (110) Acquisitions and investments (1,080) (1,605) Disposals Share issues 1, Issue of preference capital to minority Translation (74) (107) Debt decrease/(increase) 726 (951) 14

15 KEY FINANCIAL DATA AND RATIOS Sales margins EBITDA 14.1% 14.5% EBITA 9.9% 10.5% EBIT 9.3% 10.0% Tax Rate 27.0% 27.8% EBIT return on average net assets 14.0% 16.3% 15

16 KEY FINANCIAL DATA AND RATIOS Y/E 2001 Y/E 2000 Debt ( m) 1, ,619.8 Shareholders' funds ( m) 4, ,128.1 Debt/shareholders' funds 39.7% 83.8% Debt/market capitalisation 18.3% 31.9% Interest cover EBITDA/Interest EBIT/Interest

17 OUTLOOK 2002 Ireland Residential; expect slower H1, Budget changes should help H2 Commercial and industrial expected to moderate further National Development Plan to underpin infrastructure UK Europe Benefits of recent price increases should help Outlook relatively flat, higher energy costs a challenge Emphasis on efficiency gains, price improvements Lacklustre outlook with generally weak residential trends Absence of 2001 closure costs and disposal hits 17

18 OUTLOOK 2002 Americas Residential continues strong Non-residential likely to decline Infrastructure: some state funding issues but underpinned by TEA-21 Energy costs, overhead reductions and improving prices are key Our balance should mitigate any individual sectoral weakness Development Continuing flow of traditional development spend Augmented by larger deals where we see value Supported by strong interest cover, flexible balance sheet 18

19 SUMMARY Good 2001 performance in context of: Difficult trading conditions in many markets First-time inclusion of seasonal US winter losses 10m European closure costs Challenging 2002 outlook, but supported by: Contributions from 2001/2002 acquisitions Benefits of Rights Issue Balanced spread of US / European operations We anticipate a year of further progress 19

20 Liam O'Mahony, Chief Executive Harry Sheridan, Finance Director 20